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Marriott Continues to Strengthen Presence in Asia Pacific

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Marriott International, Inc. (MAR - Free Report) recently announced the opening of JW Marriott Nara in Japan. Notably, the 158-room hotel marks the opening of the first JW Marriott brand property in Japan and the company’s 800th property in the Asia-Pacific region. The company expects to launch the EDITION and Aloft brands in Japan and the Moxy brand in China by the end of 2020, thereby boosting its presence across the Asia-Pacific region.

In the last three years, the company has added close to 80 hotels per year (on average) in the Asia-Pacific region, while its pipeline has grown approximately 10% annually over the same time period.

In the first half of 2020, the company recorded 73 new signings, including 43 in the Greater China region. Some of its recent additions include AC Hotels Tokyo Ginza and three AC Hotels by Marriott brand in Malaysia.

Paul Foskey, chief development officer, Marriott, Asia Pacific, stated, "These highly anticipated brand debuts are a testament to the confidence that the owner and franchisee community has in Asia Pacific, as well as Marriott's long-term vision, especially in today's challenging business climate."

So far this year, shares of the company have plummeted 40.6% compared with the industry’s 33.7% decline.

Increased Focus on Hotel Conversion to Drive Growth

In the last three years, Marriott has witnessed a 20% rise in the number of conversion hotels added to its portfolio annually in the Asia-Pacific region. Notably, conversions allow owners and franchisees to plug into the Marriott system at a quicker pace compared to an opening of a newly-built hotel. 

Currently, the company has signed Singapore's two Autograph Collection hotels – both anticipated to fly the Autograph Collection brand flag in 2021.

Moreover, to meet the growing demand and support franchisees, Marriott has introduced an "Enhanced Franchise" model. This will help train as well as equip franchisees to leverage Marriott's powerful systems.

Marriott — which shares space with Hilton Worldwide Holdings Inc. (HLT - Free Report) , Extended Stay America, Inc. and Hyatt Hotels Corporation (H - Free Report) in the Zacks Hotels and Motels industry — has a Zacks Rank #4 (Sell) at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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